Decline in EP holders slows demand for private residential homes in 2H23

As of June 2023, EP holders only increased by 10,000, lower than the 25,600 uptick in 2022.

The lower growth of employment pass (EP) holders in Singapore has tapered the demand for private residential homes in 2H23, Huttons reported.

According to Huttons, as of June 2023, the number of EP holders only increased by 10,000.

“With tepid growth for the rest of 2023, it is highly unlikely that the increase in the number of EP holders in 2023 will come close to 2022’s 25,600,” Huttons commented.

Apart from the slower growth in EP holders in 2023, Huttons also attributed the lesser tenant demand for private residential homes to the steep increase of almost 30% in rents in 2022. 

The increase displaced some tenants in 2023, with some EP holders opting for more affordable accommodation such as co-living spaces and HDB flats, said Huttons.

“Some EP holders who have the luxury of working anywhere have chosen to be digital nomads, moving to places such as Johor Bahru, Batam or even Bali,” added Huttons.